The Organic Farming Market involves growing crops and rearing livestock without the use of synthetic fertilizers, pesticides, human waste or sewage sludge. Organic farming methods include crop rotation, green manure, compost and biological pest control. It is beneficial from an environmental standpoint as it improves soil structure and biodiversity. From a health perspective, organic foods are considered safer as they are free from harmful chemicals.The Global Organic Farming Market is estimated to be valued at US$ 216.24 Mn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Organic Farming are Heroux-Devtek Inc., Honeywell International Inc., Liebherr-International Deutschland GmbH, Raytheon Technologies Corporation, Nook Industries Inc., Parker Hannifin Corp., Electromech Technologies, Eaton Corporation PLC, Arkwin Industries Inc., Moog Inc., Woodward Inc., Safran SA, and Triumph Group.
The demand for organic food is growing significantly owing to rising health consciousness among consumers and strict regulations regarding the use of chemicals in farming. According to industry estimates, the global organic food sales grew by almost 15% in 2019 alone. North America and Europe dominate the market currently due to high disposable incomes and awareness levels in these regions.
Technological advancements such as precision farming tools, IoT sensors and data analytics are helping organic farmers improve yields. For example, sensors can monitor soil nutrients and weather conditions to aid smarter farm management practices without the use of toxic chemicals. Drones and computer vision are also useful for surveilling crops, detecting pests and enabling timely solutions.
Market Trends
The rising popularity of online purchasing of organic foods is a major trend in the market. Several pure-play organic brands are leveraging digital platforms like smartphones to target both rural and urban customers. Secondly, the concept of organic farming is extending to livestock and dairy products as well due to surging preference for chemical-free milk and meat.
Market Opportunities
One of the key opportunities is the rising preference of millennials and Gen Z for sustainable lifestyles and ethically-produced brands. If organic players can successfully market their products highlighting environmental and social impacts, they can attract younger consumers. Secondly, emerging economies like Asia Pacific and Latin America are expected to drive future demand as awareness levels improve in these regions. If certified properly, these markets have strong growth potential for organic goods.
Impact of COVID-19 on Organic Farming Market
The COVID-19 pandemic has impacted the growth of the organic farming market in multiple ways. Prior to the outbreak, the market was growing steadily at a CAGR of 4.5% during the forecast period from 2024 to 2031. However, lockdowns and supply chain disruptions caused by the pandemic have affected the market both positively and negatively.
On the negative side, restrictions on travel and transportation led to disruptions in the procurement of seeds, fertilizers and other inputs. Many smallholder farmers struggled to access markets for selling their produce. Labor shortages were also witnessed as migrant workers returned homes. This hampered farming activities and reduced production volumes in 2020.
However, on the positive side, the pandemic increased consumer preference for organic food which is considered healthier and safer. The clean label and chemical-free nature of organic products attracted more customers. Many farmers also shifted to organic farming as they were able to get better prices for their produce in such challenging times. The growing health consciousness worked in favor of market growth.
Going forward, for gaining back lost momentum, emphasis needs to be given on strengthening supply chains, promoting contract farming for ensuring buyback of produce and providing financial aid to farmers. Adoption of technologies like robotics and AI can help overcome labor issues. More processing facilities and emphasis on exports will also support organic farming market growth post pandemic.
Europe Region commands lion's share of Global Organic Farming Market
The Europe region accounted for the largest share in the global Organic Farming Market Size in terms of value in the pre-COVID period. Countries like Germany, Italy and France have been pioneering organic cultivation for decades. Higher acceptance of organic products and prevalence of organic certified land have made Europe a dominant player. Supported by favorable regulations encouraging sustainable agriculture, the region's organic farming market size stood at over US$ 116 Mn in 2024.
Asia Pacific emerges as fastest growing region
However, the Asia Pacific region is emerging as the fastest growing market for organic farming globally. Countries like India and China are increasingly converting their agricultural lands into organic farmlands. Additionally, growing health awareness and increasing export opportunities are luring more farmers towards organic practices in Asia Pacific. In 2024, the regional organic farming market exhibited a promising CAGR that is projected to continue its northward movement in the coming years on back of rapid urbanization and rising disposable incomes.
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